Valmiki Scam: Congress Faces Money Laundering Heat
The Enforcement Directorate has executed searches linked to the Valmiki scam involving Congress MP E Tukaram and MLAs in a money laundering probe. Allegations center on siphoning KMVSTDC funds for election use, involving shell entities and fictitious accounts, resulting in significant financial misappropriation within the scheduled tribe development body.
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The Enforcement Directorate (ED) has initiated a series of searches as part of an ongoing investigation into the alleged Valmiki scam, targeting Congress officials including Bellary MP E Tukaram and three MLAs. The probe is centered on accusations of money laundering linked to funds intended for scheduled tribe development.
Authorities have raided multiple locations across Bellary and Bengaluru, acting under the Prevention of Money Laundering Act. These actions follow allegations that substantial amounts, diverted from the Karnataka Maharshi Valmiki ST Development Corporation (KMVSTDC), were funneled into election-related expenses during the 2024 Lok Sabha elections.
The investigation, grounded on FIRs by the Karnataka Police and CBI, uncovered a complex network of fraudulent financial activities. These included fund transfers to fake accounts and money laundering through shell entities, culminating in an extensive misappropriation of over Rs 187 crore from KMVSTDC's accounts between March and May last year.
(With inputs from agencies.)
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